Bill (C-59), which was at first reading on November 30, 2023, is an Act to implement specific provisions of the fall economic statement tabled in Parliament on November 21, 2023, and specific provisions of the budget tabled in Parliament on March 28, 2023.
Some changes that may impact payroll include an update to the Canadian Dental Benefit, an introduction to a new EI benefit, and changes to the Canada Labour Code, retirement compensation arrangement (RCA), Bankruptcy and Insolvency Act and Companies’ Creditors Arrangement Act.
CANADIAN DENTAL BENEFIT
The bill will allow an official under the authority of the Department of Health Act, to disclose an individual’s information in respect to dental services to the Department of Employment and Social Development, the Department of Health or the Department of Public Works, and Government Services, for the sole purpose of the administration or enforcement of the Canadian Dental Care Plan.
MEASURES RELATED TO PLACEMENT OR ARRIVAL OF CHILDREN
The Employment Insurance Act will be amended to include a 15-week benefit available to claimants who have:
- One or more children placed in their care through the process of adoption under the provincial laws governing adoption in the province in which the claimant resides, or
- One or more newborn children placed in their care, and the person who gave birth to the child or children is not or will not be the intended parent of the child or children.
The benefit period can begin up to five weeks before the child or children are placed in the care of the claimant but will end 17 weeks after the week the child or children are placed in the care of the claimant.
The new benefit will come into force on a day fixed by order of the Governor Council.
CANADA LABOUR CODE
Leave for Placement of Child
The Leave for Placement of Child is an adoption leave that will be made available to federally-regulated employees allowing a 16-week unpaid leave of absence when a child:
- has been placed in the care of the employee by adoption according to the provincial adoption laws in which the employee resides;
- is born and placed in the care of an employee where the person who gave birth is not and will not be the intended parents of the child; or
- any other method described in the regulations.
The leave can be taken no earlier than six weeks before the child is placed in the care of the employee or in cases where the actual date of the adoption is earlier than the estimated date, then no earlier than the week of the actual date. The leave ends no later than 17 weeks following the week of the actual date of adoption.
If the adoption is delayed, then the leave can be delayed for no more than 52 weeks following the week of the estimated date. However, in the case where the child is hospitalized, the leave is extended by the number of weeks the child is hospitalized. Once the child is placed in the care of the employee after hospitalization, the leave must end within 52 weeks.
If the employee is notified during the leave that the child will no longer be placed in their care, the leave ends the week after the employee is notified.
Employees intending to take the leave must provide at least four weeks’ written notice to their employer before the leave begins unless they have a valid reason for not providing it sooner. The written notification must also include the length of time the employee intends to take the leave.
The Leave for Placement of Child will come into force on a day fixed by order of the Governor Council.
Leave Related to Pregnancy Loss
A federally-regulated employee is eligible for the Leave Related to Pregnancy Loss of up to eight weeks if their pregnancy resulted in a stillbirth or three days in any other case.
The eligible employee will be allowed the leave of absence if:
- their pregnancy does not result in a live birth;
the pregnancy of their spouse or common-law partner does not result in a live birth; or
- they intended to be the legal parent of the child that would have been born had another person’s pregnancy resulted in a live birth.
In the case of a pregnancy of multiples, the eligible employee can take only one leave of absence in the case of loss(es).
Employees with three months of consecutive employment are entitled to the first three days of paid leave at their regular pay rate for their normal work hours. The three paid days are considered as wages.
The leave can be taken in one or two periods. The employer can allow the leave to be taken in at least one-day increments.
The leave period(s) must begin on the day of the loss and must end within 26 weeks after that day.
The new leave will come into force on the 540th day after the Act receives Royal Assent or a day earlier that will be fixed by order of the Governor Council.
Bereavement Leave
The bereavement leave provisions will be modified. In addition to providing their employer with written notice as soon as possible stating when the leave will begin, the period of the leave, and the length of the leave, federally-regulated employees will be required to include the reasons for taking the leave in the written notice.
Employees will be required to provide written notice, as soon as possible, of any change to the length of the leave.
The new leave provisions will come into force on the 540th day after the Act receives Royal Assent or a day earlier that will be fixed by order of the Governor Council.
RETIREMENT COMPENSATION ARRANGEMENTS (RCA)
The refundable tax definition of a retirement compensation arrangement (RCA) will be updated to exclude contributions made on or after March 28, 2023, from the 50 percent of all contributions made under the arrangement while it was a retirement compensation arrangement and before the end of the year.
An RCA is a plan or an arrangement under which an employer, former employer, and, in some cases, an employee makes contributions to a person or partnership, referred to as a custodian. This change will come into force or is deemed to have come into force on January 1, 2024.
BANKRUPTCY AND INSOLVENCY ACT AND COMPANIES’ CREDITORS ARRANGEMENT ACT
The definition of a corporation in the Bankruptcy and Insolvency Act and the definition of a company in the Companies’ Creditors Arrangement Act will be updated to exclude “prescribed public post-secondary education institutions” in both federal acts.
The Bankruptcy and Insolvency Act relieves debtors from debt they cannot repay and protects debtors, lenders, creditors, and Licensed Insolvency Trustees. The Companies’ Creditors Arrangement Act allows financially troubled companies to avoid bankruptcy and ensures creditors receive some payment.
This change will come into force on the second anniversary of the day this Act receives royal assent or on an earlier day to be fixed by order of the Governor in Council.
Full details of Bill C-59 can be found here.
The Institute will continue to monitor the progress of the Bill and will advise its members accordingly.